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Recently published international rankings indicate that the performance gap between European and American universities is large and, in particular, that the best European universities lag far behind the best American universities. The country performance index we construct using the Shanghai ranking confirms that, despite the good performance of some countries, Europe as a whole trails the US by a wide margin. The reason for this situation, which contributes to Europe's lagging growthfatcat:nrfvfdmb7jfhhppbjw2rmf6sr4